By Cristal Cody
Tupelo, Miss., May 11 – GoldenTree Loan Management LP closed on a new $503.3 million collateralized loan obligation offering, upsized from $453.3 million, according to market sources and a news release.
GoldenTree Loan Management US CLO 7 Ltd./GoldenTree Loan Management US CLO 7 Inc. sold $297.5 million of class A floating-rate notes (AAA) at Libor plus 190 basis points.
The CLO also priced $77.5 million of class B floating-rate notes (AA), $26.75 million of class C deferrable floating-rate notes (A), $32 million of class D deferrable floating-rate notes (BBB-), $16.5 million of class E deferrable floating-rate notes (BB-) at an overall weighted average coupon of Libor plus 233 bps.
The deal included $53.05 million of subordinated notes.
Morgan Stanley & Co. LLC was the structuring lead placement agent. BofA Securities, Inc. and Wells Fargo Securities LLC were the co-lead placement agents.
The notes are due April 20, 2031.
The CLO has a one-year non-call period and a one-year reinvestment period.
GoldenTree invested in the CLO’s equity, the BBB- tranche and lower-rated tranches.
The transaction is backed primarily by a $464 million portfolio of broadly syndicated first-lien senior secured loans.
The notes are compliant with European risk retention regulations.
GoldenTree Asset Management has priced one new CLO year to date.
The CLO manager has issued a total of 11 CLOs totaling $6.5 billion since 2017.
The CLO manager, part of New York City-based private investment firm GoldenTree Asset Management, LP, priced three new CLOs in 2019.
| Issuer: | GoldenTree Loan Management US CLO 7 Ltd./GoldenTree Loan Management US CLO 7 Inc.
|
| Amount: | $503.3 million
|
| Maturity: | April 20, 2031
|
| Securities: | Floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agents: | Morgan Stanley & Co. LLC (structuring lead) BofA Securities, Inc. and Wells Fargo Securities LLC (co-lead)
|
| Manager: | GoldenTree Loan Management LP
|
| Weighted average coupon: | Libor plus 233 bps
|
| Call feature: | One year
|
| Settlement date: | May 8
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Class A notes
|
| Amount: | $297.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 190 bps
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
|
|
| Class B notes
|
| Amount: | $77.5 million
|
| Securities: | Senior secured floating-rate notes
|
| Rating: | S&P: AA
|
|
|
| Class C notes
|
| Amount: | $26.75 million
|
| Securities: | Deferrable floating-rate notes
|
| Rating: | S&P: A
|
|
|
| Class D notes
|
| Amount: | $32 million
|
| Securities: | Deferrable floating-rate notes
|
| Rating: | S&P: BBB-
|
|
|
| Class E notes
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| Amount: | $16.5 million
|
| Securities: | Junior deferrable floating-rate notes
|
| Rating: | S&P: BB-
|
|
|
| Equity
|
| Amount: | $53.05 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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